Megado Minerals bolts lithium project on to its critical metals portfolio
Megado has acquired 130sq km of lithium-prospective ground in the James Bay region of Quebec.
Lithium will be sought in parallel to rare earths at Megado Minerals (ASX: MEG) with the junior acquiring a 130sq km lithium property in Canada’s exploration hotspot of James Bay, Quebec.
The company, which also owns the North Fork rare earths project in Idaho, says the new Cyclone lithium project in Canada includes a package of contiguous claims in what it calls the underexplored Aquilon Greenstone Belt.
Pegmatites have been recorded along the belt and the company believes the setting of its area is favourable for potential for potential lithium discoveries.
Cyclone lies close to several lithium discoveries, including those of Patriot Battery Metals’ (ASX: PMT) Corvette project, the Adina project held by Winsome Resources (ASX: WR1) and Corvette Far East, being explored by Cosmos Exploration (ASX: C1X).
Also nickel potential
Megado, which started listed life in 2020 as a gold play, says there is also “significant” potential for massive nickel sulphides, as well as orogenic-style gold.
The company has received firm commitments to $2.7 million placement to finance the new acquisition.
Megado says the James Bay region is fast emerging as Canada’s, and perhaps one of the world’s, premier hard rock lithium districts.
Cyclone has had limited exploration for lithium.
Initial work will include identifying pegmatites and choosing drill targets.
Enhancing green energy credentials
Megado managing director Ben Pearson said the geology of the region is compelling.
“Acquiring the Cyclone project significantly enhances our North American footprint and is consistent without strategy of securing highly prospective exploration projects that provide exposure to the green energy transition and global decarbonisation,” he added.
The company is paying the vendor C$250,000 (A$270,875) upfront and 45 million shares in three tranches. A total of 7 million options will be added, exercisable at A$0.10 per share. There will also be a 2% net smelter royalty over all the minerals in the field.
To placement participants, there was an issue of another 60 million shares that will be made at $0.045 per share.